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Prime Contractor Subcontractors Contract Terms

Venable LLP

Federal Subcontractors Beware: The Workshare Provision in Your Subcontract May Not Apply When the Government Increases the Value...

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A recent decision from the Court of Appeals of Virginia may have companies doublechecking the workshare terms in their subcontracts. The Court held that a subcontractor's 40 percent workshare only applied to the $70 million...more

Venable LLP

The Subcontractor Performed. The Prime Contractor Paid. But a Hacker Ended Up with the Money. Who Is Responsible?

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When hackers gain access to a subcontractor’s information systems and divert the prime contractor’s payment to themselves instead of to the subcontractor, does the prime contractor still have to pay the subcontractor?...more

PilieroMazza PLLC

Terms and Conditions vs. Contract Clauses: Which Language Applies to Government Contract Disputes?

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Determining which language applies to a contract dispute is critical to any contractor seeking to recover costs through the claims and appeals process. Recently, through a series of appeals before the Civilian Board of...more

Venable LLP

Federal Contractors and Subcontractors May Want to Double-Check the Liability Caps in Their Agreements After This Court Decision

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When two companies negotiate a subcontract in support of a federal government prime contract ("federal subcontract"), they may include provisions capping their liability to each other at specific amounts. In structuring such...more

Venable LLP

My Subcontractor Is Suing Me for What Now? Court Allows One "Constructive" Change Theory Against Prime Contractor, Dismisses...

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Government contractors often "flow down" contract clauses from the Federal Acquisition Regulation (FAR) and its supplements to their subcontractors, including clauses related to changes (e.g., FAR 52.243-1) and excusable...more

PilieroMazza PLLC

Construction Contractor Wins COVID-Related Construction Claim on Appeal: Lessons Learned

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Since the beginning of the pandemic, boards and courts have denied a vast majority of construction claims seeking pandemic-related costs under fixed-price contracts. In this blog, PilieroMazza summarizes a recent claim where...more

Bass, Berry & Sims PLC

Joint Venture Past Performance Can Be Gleaned from Previous Prime-Sub Relationships

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Over the last few years, the government has shifted away from lowest price technically acceptable valuations placing a larger importance on past performance. The past performance requirement can sometimes create obstacles for...more

Bradley Arant Boult Cummings LLP

Prime Contractor Beware, No. 3: Tis The Season, but is your Retainage safe under the Tree?

Here’s the Scenario: Try explaining the concept of “retainage” to a businessperson unfamiliar with the construction industry at your next holiday party. Here’s the typical response as she spits out her eggnog: “Wait a minute:...more

Dunlap Bennett & Ludwig PLLC

Updating Government Contracting Documents for Cybersecurity

This article is the third and final installment in a series of articles about how lawyers can better serve their clients by involving themselves in cybersecurity planning at an early stage. Just like Return of the Jedi was...more

Venable LLP

Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses

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​​​​​​​The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state's Prompt Payment Act...more

Williams Mullen

New Virginia Prompt Payment Statutes Invalidate Most 'Pay When Paid' Clauses

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On April 27, 2022, the Virginia General Assembly passed Senate Bill 550, which makes “pay when paid” and “pay if paid” clauses unenforceable in most circumstances and requires both public and private construction contracts to...more

PilieroMazza PLLC

BREAKING: SBA to Suspend Bona Fide Place of Business Requirements for 8(a) Construction Contracts, Effective Immediately

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Bibi Hidalgo, the Associate Administrator for SBA’s Office of Government Contracting and Business Development, just announced during her keynote address at the National 8(a) Association Alaska Regional Conference that SBA...more

Obermayer Rebmann Maxwell & Hippel LLP

[Webinar] Government Contracting Fundamentals Series: Teaming, Joint Ventures and the Mentor Protégé Programs - October 14th,...

Obermayer is excited to introduce its new “GovCon Examiner Live” webinar series, your resource for the fundamentals in government contracting and small business procurement. Over the course of 12 months, our experienced...more

Miles & Stockbridge P.C.

Protect Yourself: Safe Contracting and Subcontracting in the Era of Pandemics

As the marketplace slows in response to the worldwide spread of COVID-19, companies are (or should be) breaking out their contracts and subcontracts to see what they say to protect themselves from current and future problems....more

Holland & Knight LLP

Contractors Should Prepare for the Coronavirus

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With the novel coronavirus (COVID-19) spreading outside of China at an ever-increasing rate, government contractors should prepare for possible service and payment interruptions. In addition, the administration is considering...more

Bennett Jones LLP

Incorporation of Arbitration Clauses by Reference: A Cautionary Tale

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The British Columbia Supreme Court in MRC Total Build Ltd. v F&M Installations Ltd., 2019 BCSC 765 [MRC Total Build] recently considered an application by a general contractor to stay proceedings commenced by a subcontractor...more

Troutman Pepper

Federal Court in Pennsylvania Holds Pay-If-Paid Clause Unenforceable Where Prime Contractor’s Inadvertent Delays Contribute to the...

Troutman Pepper on

Connelly Constr. Corp. v. Travelers Cas. & Surety Co. of Am., 2018 U.S. Dist. LEXIS 123009 (E.D. Pa. July 24, 2018). The Commonwealth of Pennsylvania Department of General Services undertook a project for the construction...more

Williams Mullen

The Benefits of Commercial Item Contracting

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Commercial Item Contracting is intended to benefit both the government and contractors, but those benefits can sometimes get lost in the shuffle. Reminding the parties why Commercial Item Contracting was implemented can help...more

Williams Mullen

Negotiating Subcontracts From Both Sides

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Although they share an ultimate customer, the interests of a prime contractor and a subcontractor are often divergent. Careful consideration and negotiation of subcontract terms can help to ensure there is a fair balance...more

PilieroMazza PLLC

The Importance of a Carefully-Drafted Work-Share Provision - Set-Aside Alert

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Subcontracts contain a number of important provisions that shape the relationship between a prime contractor and its subcontractor. However, there is one provision that overshadows the rest in terms of its significance to the...more

Seyfarth Shaw LLP

Are You Really An Additional Insured?

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Parties structuring transactions or business relationships often attempt to shift risk to their counter-party by having such party included as an additional insured on the counter-party’s insurance policies. In the real...more

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